Top 3 Reasons why people remain poor



Everyone knows the simple rule to get rich – Save and invest your money. So why is everyone not rich? I will be going through my top 3 reasons why some people do not become rich despite already knowing the formula to be rich.

1. Lack of Discipline

The first and top reason why people are not rich is a lack of discipline. Everyone has their own financial plan in mind – Save a portion of their income, invest it, and spend the rest. The difference between the people who eventually become rich and the people who remain poor is simply discipline to stick to their financial plan. For example, disciplined individuals would force themselves to invest 20% of their income no matter what and live off the remaining 80%. On the other hand, undisciplined individuals would spend their paycheque first before using the rest to invest. Simply put, the importance of discipline to stick to your financial plan is unparalleled if your goal is to become rich.




2. Laziness

The second and most popular reason why people do not become rich is laziness. Humans are lazy by nature and like to stay in their comfort zone. These individuals know the formula to be rich but simply do not put it into action. Why? They are lazy to execute it and do rethe research and would much prefer to remain in their own comfort zone. For example, I have many peers that procrastinate opening their own CDP and brokerage account simply because they are lazy. They would rather put their savings of $10k in a low interest bank account that does not even beat inflation than to invest it properly. To put things in perspective, the process of opening a CDP and brokerage account online takes a maximum of 15 minutes. I am honestly perplexed why some of my peers just can’t bring themselves to do it. Laziness is a big reason why many people do not achieve their goal of becoming rich.



3. Depending on a single income source

The last reason why people do not become rich is that they tend to depend on a single income from their job. They live paycheque to paycheque and have no other forms of income. In our modern society, it is absurd to be living off a single source of income from your job given the increasing cost of living. There are countless ways to generate more income given the accessibility to the internet and the development of social media applications. Generating more income streams could be as simple as buying/selling things online, starting a side hustle, and buying dividend or growth stocks. Rich people have many streams of income and they constantly look for ways to increase their number of income sources. If you want to be rich, you need to stop depending on a single income and do your research to generate more income streams for yourself.



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